TNAG-2059-FCO40-2937-Hong-Kong-Overseas-Service-Pensioners--Association-(OSPA)-1990 — Page 47

HKD

Foreign and Commonwealth Office

London SW1A 2AH

5 June 1990

FNM Pusinelli Esq

Chairman

Overseas Service Pensioners' Association

63 Church Road

HOVE

Sussex

BN3 2BD

Jear Mr Pusinelli,

Thank you for your letters of 4 and 25 April to Robin McLaren about sterling safeguards for expatriate pensioners of the Hong Kong Government. I am replying, since I have now succeeded him as the Assistant Under- Secretary concerned.

I sympathise with your position, but I hope that you in turn will appreciate the difficulty which the Hong Kong Government face on this question. The Hong Kong Government do not offer a sterling safeguard to their Government servants in general. It would be extremely divisive for them therefore, as the Chief Secretary pointed out in his letter of 15 February to Colvin Haye, to contemplate a sterling safeguard for expatriate officers only. I am sure that you recognise the force of this.

I might add that, as you know, the Hong Kong Government have proposed that a small fund be established to provide one-off payments to any pensioners in distress. I understand that this has now been approved by EXCO.

For our part, we see no present justification for contemplating any sterling link or safeguard. The Hong Kong dollar's link with the US dollar has proved extremely resilient. Of course, the US $/f sterling rate has fluctuated, but we do not believe that this has led to cases of hardship. I have to say that most Hong Kong pensioners continue to do reasonably well, certainly in comparison with their UK public servant counterparts and HMOCS staff in receipt of pensions from other territories.

Your smilevedy,

Алибе And

RA Burns